The Reserve Bank of Australia on Tuesday unexpectedly raised its policy rates by 25 basis points to 3.85%.
The market expected the Australian central bank to hold rates at 3.6% as it previously did in the April meeting. After the hike, the Australian dollar quickly strengthened by 1.04% to 0.6699 against the U.S. dollar.
Meanwhile, the S&P ASX200 Index was the only major market in Asia to post a loss on Tuesday. The index was down 1.06% to 7,256.80 points.
